Answer:
The answer is: $4,522
Explanation:
Since Stanford doesn't operate in the restaurant business and doesn't buy the restaurant, he cannot deduct any amount for investigation costs relating to the restaurant.
Stanford doesn't operate in the bakery business but he bought the bakery, so he can deduct up to $5,000 (before amortization) for investigation costs related to the bakery. But those $5,000 are reduced by every dollar he spent over $50,000, so he can only deduct $4,000 [= $5,000 - ($51,000 - $50,000)].
The remaining $47,000 (= $51,000 - $4,000) can be amortized over 180 months, which equals $261 per month (= $47,000 / 180 months).
Since he bought the restaurant in November, he can deduct two months: $261 per month x 2 months = $522
So his total deduction for investigation expenses is = $4,000 + $522 = $4,522
I believe this is true.
Hope this helps!
Answer:
Explanation: A supply equation shows us the mathematical relationship between quantity supplied and the price of the good. Since price and supply are positively related, P must carry a positive sign in the supply equation.
Given, supply is Qs=4P - 24
P is the price paid by consumers in the market.
When a $3 tax is levied , price sellers receive becomes P-T = P - 3
So, the new supply equation will be